Originally designed as an underlying technology for Bitcoins, Blockchain is a Distributed Ledger Technology used to store data in form of Batches called blocks which are linked together in a consecutive order to form a continuous trail of data.
Blockchain technology is based on a non destructive way to track information changes over time which is similar to old method of General Financial Ledger. It stores data from very beginning of the transaction and records all changes made to data overtime. This allows to have a clear understanding of information and changes made to it overtime.
Unlike age old ledger system where data was stored in a book or single file in computer database, blockchain data is decentralized and stored in a large network of computers which make it difficult to get tampered and makes it more reliable for users to store information.
A blockchain could be Private Blockchain where data is restricted to a group of people, Public Blockchain where data is available for everyone in the system or Hybrid Blockchain where certain data is made public and rest can be made private.
HOW BUSINESSES CAN ADAPT TO BLOCKCHAIN TECHNOLOGY?
Since Blockchain represents the data in decentralized form there are many benefits to businesses from this. It creates more trust on data and avoids risk of Data Tempering.
Blockchain works on the technique of Proof-of-work to change data so if one has to make changes to data they will first have to solve a cryptographic puzzle to record the transaction, which will be shared among all systems. After this step a new block will be added to blockchain holding the transaction. Blockchain allows us to cut intermediaries and allowing peer to peer transaction at the same time which ensure the reliability and easy processing of data which directly can save us time/money.
This huge flexibility is bringing a huge shift in the way businesses used to work and many businesses nowadays are adopting this latest technology for business.
Here are few examples of how few sectors are being transformed by using Blockchain Technology:
• BANKING AND TRANSACTION :- Bitcoin based Remittance services. Blockchain Technology helps in sending money cross borders instantly and with very less transaction charge. Remittance services alone is a $600 Billion industry which will be revolutionized soon through blockchain technology.
A report by IBM suggests that by 2018 20% of the banks will be using Blockchain Technology.
• TRANSPORTATION AND RIDE SHARING INDUSTRY:-
Ride sharing decentralized application. Blockchain technology can be used to make decentralized apps which will allow car owners and users to arrange ride on personal terms without getting third party involved in it.
This is going to change the way UBER and OLA operates which is a huge sector of services.
• CYBER SECURITY:- Blockchain technology uses advanced cryptography for making changes in data and Proof-of-work technique makes data more secure plus difficult to hack.
Data hacking is one of the main problems tech companies are facing around the globe and a lots of ineffective efforts were made earlier to secure data from hackers.
In such scenarios blockchain technology can eliminate that problem at larger extent.
• SUPPLY CHAIN MANAGEMENT INDUSTRY :-
Decentralized supply chain management application. Through Blockchain technology transactions can be stored in a decentralized record and can be monitored safely and clearly which can reduce time delays, human mistakes which directly impacts costs and wastage of material.
Apart from these, there are many such sectors which are being revolutionised by Blockchain technology.
On one side where we are seeing Blockchain making so much difference in various sectors. There is still debate going on whether this is good or we should stick to centralized system for our ecosystem. Industry experts says there is always a debate on the adoption of big technologies like Blockchain Technology because they bring a shift in present industry as many companies will have to change their business model if they adopt this but if we look at today’s pattern how industries are adopting customer oriented approaches many believe that BLOCKCHAIN TECHNOLOGY IS HERE TO STAY.
We at Stimulus thrive to work on latest technology to help businesses stay ahead. Talk to us to know how we can help you by integrating blockchain technology to your business.